Talking Points:
- Yen drops as risk appetite firms overnight, US Dollar gains on Fed outlook
- Canadian Dollar drops alongside crude oil prices ahead of OPEC meeting
- Euro unlikely to find direction in German CPI data on limited ECB impact
The Japanese Yen underperformed in overnight trade, falling against all of its top counterparts. Swelling risk appetite appeared to be behind the selloff, with the anti-risk currency falling inversely of gains in S&P 500 futures and Japan’s benchmark Nikkei 225 stock index.
Meanwhile, the US Dollar continued to push higher as comments from St. Louis Fed President James Bullard appeared to reinforce a cautiously hawkish tone from Fed Chair Janet Yellen last week. Bullard said global markets appear well-prepared for a possible US rate hike, suggesting fears of triggering a panic many not hold back the resumption of stimulus withdrawal.
The Australian and New Zealand Dollars bore the brunt of the greenback’s advance as the threat of on-coming tightening exerted outsized pressure on currencies whose primary appeal is their yield-bearing properties. The Canadian Dollar declined alongside crude oil prices in a move that may reflect pre-positioning for this week’s OPEC meeting.
Looking ahead, German CPI figures headline the economic calendar in European trading hours. The headline year-on-year inflation rate is expected to rise to 0.1 percent. The report seems unlikely to generate a strong response from the Euro considering the outcome’s limited implications for near-term ECB policy trends as the central bank waits to evaluate the impact of a suite of stimulus measures unveiled earlier.
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Asia Session
GMT | CCY | EVENT | ACT | EXP | PREV |
---|---|---|---|---|---|
23:50 | JPY | Retail Trade (YoY) (APR) | -0.8% | -1.2% | -1.0% |
23:50 | JPY | Retail Sales (MoM) (APR) | 0.0% | -0.6% | 1.5% |
23:50 | JPY | Dept. Store, Supermarket Sales (APR) | -0.7% | -1.2% | -1.2% |
00:35 | USD | Fed's Bullard Speaks in Seoul | - | - | - |
01:00 | AUD | HIA New Home Sales (MoM) (APR) | -4.7% | - | 8.9% |
01:30 | AUD | Inventories SA (QoQ) (1Q) | 0.4% | 0.0% | 0.0% |
01:30 | AUD | Company Operating Profit (QoQ) (1Q) | -4.7% | 0.4% | -3.6% |
European Session
GMT | CCY | EVENT | EXP | PREV | IMPACT |
---|---|---|---|---|---|
06:00 | EUR | German Import Price Index (MoM) (APR) | 0.4% | 0.7% | Low |
06:00 | EUR | German Import Price Index (YoY) (APR) | -6.2% | -5.9% | Low |
06:45 | EUR | French GDP (QoQ) (1Q P) | 0.5% | 0.5% | Medium |
06:45 | EUR | French GDP (YoY) (1Q P) | 1.3% | 1.3% | Medium |
07:00 | CHF | KOF Leading Indicator (MAY) | 102.7 | 102.7 | Low |
07:00 | CHF | Total Sight Deposits (MAY 27) | - | 493.6b | Low |
07:00 | CHF | Domestic Sight Deposits (MAY 27) | - | 420.2b | Low |
09:00 | EUR | Eurozone Economic Confidence (MAY) | 104.4 | 103.9 | Low |
09:00 | EUR | Eurozone Business Climate Indicator (MAY) | 0.17 | 0.13 | Low |
09:00 | EUR | Eurozone Industrial Confidence (MAY) | -3.5 | -3.7 | Low |
09:00 | EUR | Eurozone Services Confidence (MAY) | 11.3 | 11.5 | Low |
09:00 | EUR | Eurozone Consumer Confidence (MAY F) | -7 | -7 | Low |
12:00 | EUR | German CPI (MoM) (MAY P) | 0.3% | -0.4% | Medium |
12:00 | EUR | German CPI (YoY) (MAY P) | 0.1% | -0.1% | Medium |
Critical Levels
CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
---|---|---|---|---|---|---|---|
EUR/USD | 1.0962 | 1.1052 | 1.1084 | 1.1142 | 1.1174 | 1.1232 | 1.1322 |
GBP/USD | 1.4471 | 1.4555 | 1.4589 | 1.4639 | 1.4673 | 1.4723 | 1.4807 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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